Crypto showed early signs of stabilising on Thursday after six brutal weeks of selling.
Bitcoin clawed back above $92,000, giving investors a rare sense of relief.
Meanwhile, Layer-2 tokens led the rebound, signalling growing optimism in faster, cheaper solutions.
Overall, the market had tumbled roughly 25% from October highs, erasing more than $1 trillion.
Crypto Stabilises
Fading hopes of a U.S. Fed rate cut further deepened the slump.
Additionally, concerns over overheating in AI and risky assets spread fear across global markets.
As a result, equities in Asia, Europe, and the U.S. fell alongside crypto.
At the same time, Ethereum and other Layer-1 tokens struggled, as investors shifted to nimble alternatives.
Layer-2 Gains Lead
Specifically, Starknet surged 17.5%, and zkSync rose 15.2%, driving Layer-2 gains.
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Similarly, AI-linked tokens rebounded with tech stocks, with Fetch.ai climbing 9.45%.
Meanwhile, NFT and privacy tokens, including Zcash, Dash, and Hyperliquid, outperformed broader markets.
However, DeFi, GameFi, and SocialFi sectors remained weak, revealing ongoing fragility.
Analysts warn that thin liquidity and macro-driven volatility could persist into December.
Furthermore, Alphabet CEO, Sundar Pichai cautioned that AI valuations risk a sharp correction.
JPMorgan Chase vice-chair Daniel Pinto echoed these concerns, noting that AI equity drops could spill into crypto.
Outlook And Caution
Some strategists believe the slump may finally be finding a floor after trillion-dollar losses.
Consequently, selective sectors, especially Layer-2s, could lead a more sustained recovery.
Investors remain cautious, watching closely to see if Thursday’s gains signal a meaningful turnaround.
For now, crypto stabilises but remains fragile, and the next few days will determine its direction.
